How do you know your business is doing “fine” if you do not have a business plan? This is like a runner stating that he is “fast” when asked his running pace. Quality and success cannot be measured without having benchmarks and goals. A business plan provides both, allowing you to compare your outcomes to your goals. Without a plan, it is all too easy to keep moving the bar for yourself.
Business owners may neglect planning for a variety of reasons. They may dislike making decisions, or they may worry about how the plan will reflect their success. An owner may feel anxious about documenting (and making “official”) job descriptions, lines of authority, budgets, and marketing plans. An entrepreneur may dread such control measures, feeling that a business plan is just like having a boss! If you build a house without a plan, however, you may find yourself living in what looks like a child’s play fort. Every stage is based on a sudden inspiration, and your new home becomes “curiosity run wild.” A quality architect begins with his or her final product in mind. To build a secure business, you must plan.
70 to 80 percent of new businesses fail in their first year, and of those that continue past a year, only half survive to five years. In light of such daunting statistics, it seems foolish to take unnecessary risks – like failing to plan.
You may still be thinking, “I can’t make a plan, because things change too quickly.” Although constant change is inevitable in any business, a good plan can be your key to dealing with change. A good plan keeps you consistently moving forward – sometimes slowly, sometimes quickly, but without crashing!
While writing your business plan, you may feel frustrated. After all, you will be writing your goals, without taking immediate action to reach them. You must understand where you are and where you are going, before going anywhere. Writing a plan can be exhausting, too. I guarantee, however, your listless feelings will disappear, as your business transforms from “doing just fine” to “doing very well.”
Below are some questions to consider while developing your plan:
• Why do I want to start my own business?
• Have I found the right business for me?
• Who are my customers?
• What do these customers need that the market is not currently providing?
• How will I reach them?
• What will it take to reach them?
• How much will it cost to provide for their unmet needs?
• How much are they willing to pay to meet these need?
• Can I make money at this business?
Like to know how we can assist your business? Visit www.leadershipmanagementsolutions.com.au
Here are some of the most common myths about succession planning.
Myth #1: If there are no imminent retirements, succession planning needn’t be a top priority.
According to industry research, many organisations will lose up to 25% of their senior staff due to retirements in the next five years.. These top performers play a significant role in a company’s success, often serving in high-level, supervisory roles. For successions to progress smoothly, the people chosen to fill these roles need to be prepared and adequately trained. That process takes time.
Myth #2: Succession planning is only an issue for big companies.
85 to 95 percent of all the companies in Australia today — more than 10 million – are family-owned or family-controlled. The smaller the business, the greater the impact is felt from a replaced employee. This is especially true of any employee succession in a sales or operations leadership role, as a poor month or two can mean disaster for a small company. Small companies need to plan early and invest in the training necessary to help the new or promoted employee succeed. For smaller companies, this may mean researching outside learning opportunities and setting aside a budget to cover them.
Myth #3: There need only be a succession plan for C-level team members.
During difficult economic times, Manager and director-level professionals have been asked to take on more duties than ever before. As such, it is important to look at a cross-section of departments to ensure proper succession plans are in place for each division.
Myth #4: Succession planning should be handled on a case-by-case basis.
Continuity works best. Allowing each department to come up with its own unique process for succession planning, can be a troublesome and time-consuming endeavor. Organisations, instead, should create a company-wide process that could then be used by each individual department.
Myth #5: Good talent is easy to spot.
As an employee moves up the corporate ladder, soft skills become more necessary and valuable components of success – management skills, emotional intelligence, leadership ability, and so forth. However, these skills can be difficult to quantify. To spot and cultivate employees with these skills, an organization needs an instrument to help measure and assess talent. Talent assessment needs to be a critical part of your succession planning process.
Myth #6: Succession planning only pertains to baby boomers.
It's not only the Gen Y's that are job mobile. This means that your top performers may be leaving sooner than you imagine. As such, it’s important to think about succession planning – not as a one-time effort – but as an ongoing process to continually grow and develop your organisation.
If you would like further information on how we can assist with your HR capability needs, please visit our website www.leadershipmanagementsolutions.com.au
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